Maryland Bankruptcy Lawyer

Wiping out second mortgage by filing bankruptcy

admin — Tue, 07 Feb 2012 18:05:22 +0000

People in problems with second mortgage have a question in common. That is if second mortgage can be wiped out through bankruptcy. The answer to this will depend on several factors. First of all, you will have to consider under which Chapter you are going to file the bankruptcy and how much of equity there is in your home. But, bankruptcy hurts your credit and so it is important to be aware of your affordability. Thus, before you take out a mortgage, it is important for you to calculate a mortgage.

Second mortgage and bankruptcy

As has been said before too, whether or not your second mortgage can be wiped out with bankruptcy depends on various factors. Thus, you will be required to consider the equity that has built up on your home and which is the Chapter under which you are going to file the bankruptcy.

But, yes, second mortgage can be wiped out if the equity in your home is too low and if you are going to file bankruptcy under Chapter 13. If the court removes the second mortgage, it is known as stripping of the lien or cram down. Under the law of Chapter 13 bankruptcy, section 11 USC 1322 you can potentially allowed to forgo the second mortgage, depending on some circumstances. If the second lien as a whole is unsecured, then as the home value drops below the first mortgage, the second one can be negated through filing of Chapter 13 bankruptcy.

This lien stripping program is available to those individuals who want to get their debts reorganized by using the Federal Laws under the Title 11 of the United States Code. This kind usage of the second mortgage removal program is possible only through the debt reorganization schedule, which is commonly referred to as the Chapter 13 bankruptcy.

You must be wondering that how can a mortgage be unsecured? It has been said in Section 506 of the Bankruptcy Code that any lien can be a secured claim only if there is enough value in the asset against which it is being taken. This can happen to the extent that if claim exceeds the value of your collateral, that portion of claim becomes unsecured. In case of Chapter 11 and Chapter 13, even the voluntary liens, like those of the mortgages and the security interests can be stripped down even to value of collateral kept against the mortgage, with an only exception of the voluntary liens which are secured by the residence of the debtor.

Refinancing Your Home During a Chapter 13 Bankruptcy (bankruptcy7-13.com)
Is it possible to refinance your home after filing bankruptcy? (virginia-bankruptcy-lawyer.com)

Facing Foreclosure? Help With Your Financial Problems Is Available

rob — Mon, 27 Apr 2009 16:57:56 +0000

A recent article in The Baltimore Sun said that calls to non-profit consumer credit counselors in Maryland are up almost 20 percent.

Anne Balcer Norton, director of foreclosure prevention at St. Ambrose Housing Aid Center in Baltimore, told The Sun that the center expects to work with 3,000 families this year to avoid foreclosure, up from 800 two years ago.

The point in all this is that you are not alone in your financial struggles. You can contact a qualified bankruptcy attorney to help you formulate a strategy to get out of debt or save your home from foreclosure.

There are other options, but remember that bankruptcy provides protections for some of your assets in order to give you a fresh start.

If you are looking for other options before considering bankruptcy, there is help available here:

First Call For Help, 24-hour referral to health and human services in Maryland, at 800-492-0618
Maryland Crisis Hotline for crisis intervention services, 800-422-0009
One-Stop Career Centers for information on unemployment benefits, job placement, resume writing and other information for job seekers. Find a center near you at www.dllr.state.md.us
Mortgage foreclosure prevention programs can be found at www.mdhope.org or by calling 877-462-7555.

Maryland Fair Debt Collection Practices

rob — Mon, 02 Mar 2009 14:16:22 +0000

Do I have any protection from debt collectors under federal law?

Under the Federal Debt Collection Practices Act of 1977 (which has since been amended seven times through 2006), all debtors in the United States have these protections against debt collectors:

Debt collectors may not:

Telephone you earlier than 8 a.m. or later than 9 p.m.
Discuss your debt with anyone else
Fabricate the negative results of not paying your debt
Contact you in any way once you state in writing that you do not wish the collector to contact you further
Deceive or threaten you
Use foul or abusive language in conversations with you
Contact you at work (either by telephone, in writing or in person) if your company’s policies do not permit such contact
Attempt to visit you in person at your home more than once every thirty days (although a follow-up visit after an initial contact may be considered legal)
Enter your home, unless asked to do so by a member of your household who is age 18 or older
Remain on your property after you ask them to leave
Attempt to contact you in any way after you have stated in writing that you believe the alleged debt to be incorrect; should the creditor be able to prove that the alleged debt is indeed owed, then the debt collector may resume attempts to collect the debt.

Of course, should you decide after consulting a qualified Maryland bankruptcy attorney to file for Chapter 7 or Chapter 13 personal bankruptcy, then debt collectors may not contact you at all after you file.

Do I have any additional protection against debt collectors under Maryland state law?

Under Maryland law, debt collectors may not …

Use violence or force in anyway, or threaten to do so
Intimidate you with the threat of criminal prosecution, unless you have violated criminal law
Report or threaten to report damaging information that they know to be false about your credit worthiness
Attempt to contact your boss or co-workers about a debt prior to receiving a final judgment against you
Use foul or abusive language with anyone related to you
Release or threaten to release to anyone other than you and your spouse (or if you are a minor, you and your parents) information that could negatively impact your reputation if there is not a legitimate need to do so.
Contact you or any family members of yours in an abusive or harassing fashion
Lie to you or any of your family members about the rights he/she has in attempting to collect the debt

Will declaring personal bankruptcy force debt collectors to leave me alone?

Once you file for personal bankruptcy, and then simply inform each debt collector who contacts you. Under federal and Maryland state law, the debt collector must cease to contact you about any debt listed in the bankruptcy filing. Remember, though, that if you take out any personal loans after bankruptcy and fail to make timely payments, debt collectors may legally contact you about that new loan not covered in the bankruptcy filing.

By the way, who is considered a debt collector?

Debt collectors can be anyone hired by a creditor to collect a debt and can include attorneys or collection agencies collecting for someone else. Creditors who attempt to collect their own debts under an assumed name are considered debt collectors. However, creditors attempting to collect their own debts under their own name are not considered debt collectors.

Maryland faces growing foreclosures, bankruptcies

admin — Tue, 03 Jun 2008 16:38:58 +0000

Maryland, like most other states in the country, saw record numbers of personal bankruptcy filings in 2005 prior to the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Action. While this law saved a good many homes then, it’s created a new problem now. One that many didn’t see coming.

The housing and mortgage crisis has hit Maryland with a vengeance. Foreclosures have risen 150% in the past year. Thousands have found themselves in a position where, because of their 2005 bankruptcy filing, they are unable to refinance their adjustable rate mortgage. When the rate resets they are now unable to pay their mortgage payments and are now facing foreclosure.

The Maryland state senate passed a bill which eliminated fast-track foreclosures, requiring upfront disclosure from lenders and lengthening the foreclosure period from 15 days to 90 days. But even these measures, most experts agree, won’t be enough to help the thousands of Maryland residents losing their homes.

Is it just about foreclosure?

After the 2005 bankruptcy law changes, Maryland saw bankruptcy filings spike then drop to all new lows. However, with foreclosures and housing spiraling out of control, bankruptcies are on the rise once more. Nor are mortgages a sole cause for financial worry. Many people find themselves facing financial disaster through no fault of their own, such as a job loss, sudden illness, or unexpected death. Medical expenses continue to rank as a top financial concern nationwide.